Notes to Accounts of Steel Cast Ltd.

Mar 31, 2017

1. No financial statements or other information are received during the year from a partnership firm, Steelcast LLC -USA. As informed to the Auditors by the Management, the firm is closed down and no transactions have been carried out during the year.

As a matter of prudence, the Company has made provision for impairment of '' 1,143,864 towards the investment in the said partnership firm and has also provided '' 5,884,886 for doubtful debts receivable from the said partnership firm.

2. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

3. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 âSegment Reportingâ are not applicable.

4. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy. Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

8. Disputed Income Tax Liabilities Rs.592,729 (30,170).

9. In respect of land revenue charges: Rs.1,965,018 (2,129,906)

10. In respect of other matters: Rs.1,702,925 (1,522,925)

11. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

12. Extra-ordinary items Rs.9,633,525 relates to profit on sale of vacant land during the year.

13. Proposed Dividend:

The Board of Directors at its meeting held on May 22, 2017 has recommended a dividend of Rs.0.60 per equity share for the year ended March 31, 2017. The declaration and payment of dividend is subject to the approval of the shareholders in the Annual General Meeting.

Proposed Dividend: Rs.12,144,000 Corporate Dividend Tax: Rs.2,472,233

According to the revised AS 4 - ''Contingencies and events occurring after the balance sheet date'' as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Company has not accounted for proposed dividend (including tax) as a liability for the year ended March 31, 2017.

14. Related Party Disclosures:

15. Associates:

- Steelcast LLC - USA

- Rushil Industries

- Rushil Industries Limited

- Rushil Global Trade Limited

- Dynamic Ship Recyclers Private Limited

16. Key Management Personnel and their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli *

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Ms. Neelam Ahuja

- Mr. S R Sharma

17. Figures in the brackets are the figures for the previous year, unless otherwise stated.

18. All the amounts are stated in Indian Rupees, unless otherwise stated.

a. Of the Total share capital 13,116,000 Equity shares were issued as fully paid up bonus shares

b. Equity shares issued as fully paid up bonus shares or otherwise than by cash during the preceding five years : 9,108,000

1 Rights, preferences and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a face value of '' 5 each ranking pari passu in all respects including voting rights and entitlement to dividend.

Notes :

2. Term loans (in indian rupee accounts) are from Bank of India and HDFC Bank against first pari pasu charge on gross block of the fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

3. Term loans (in foreign currency accounts) are from Standard Chartered Bank against first pari passu charge on gross block of fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

4. Term loans from others are against hypothication of plant & equipment purchased from the interest free finance from one of the customer Caterpillar India Private Limited (Rs. 191,457,749) and against mortgage of a residential property.

5. Working capital finance (Indian rupees accounts) from Banks Bank of India, HDFC Bank and Standard Chartered Bank is against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the directors.

6. Working capital finance (foreign currency accounts) from Standard Chartered Bank and HDFC Bank is against pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed but one of the directors.

7 Company''s share of profit from a partnership firm, Steelcast LLC USA is accounted for from the unaudited financial statements received for the accounting year ended on 31st December, 2015.

8. During the financial year 2015-2016, the company has issued and allotted 2,024,000 equity shares of '' 5 each to non-promoter investors on preferential basis at a premium of '' 55 per equity shares. Accordingly, share capital of the Company has been increased to that extent.

9. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

10. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 âSegment Reportingâ are not applicable.

11. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

ii. Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy. Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

iii. Disputed Income Tax Liabilities Rs.30,170 (30,170).

iv. In respect of land revenue charges: Rs.2,129,906 (2,129,906)

v. In respect of other matters: Rs.1,778,916 (1,522,925)

13. Deferred tax liabilities of Rs.2,860,000 (Rs. 39,725,907) arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is debited to the profit & loss account. Details of the balance of Rs.67,360,000 (Rs.64,500,000) are as under:

14. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28 as prescribed under the Companies (Accounting Standards) Rules, 2006. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

15. Figures in the brackets are the figures for the previous year, unless otherwise stated.

16. All the amounts are stated in Indian Rupees, unless otherwise stated.

Equity Shares: The company has one class of equity shares having a face
value of Rs. 5 each ranking pari passu in all respects including voting
rights and entitlement to dividend.

Notes:

1. Term loans (in indian rupee accounts) are from Bank of India and
HDFC Bank against first pari pasu charge on gross block of the fixed
assets and second charge on current assets of the Company and further
guaranteed by one of the directors.

2. Term loans (in foreign currency accounts) are from Standard
Chartered Bank against first pari passu charge on gross block of fixed
assets and second charge on current assets of the Company and further
guaranteed by one of the directors.

3. Term loans from others are against hypothication of plant &
equipment purchased from the said finance and against mortgage of a
residential property.

1. Working capital finance (indian rupees accounts) from Banks Bank of
India, HDFC Bank and Standard Chartered Bank is against first pari
passu charge on inventory and book debts and second charge on gross
block of fixed assets of the Company and further guaranteed by one of
the directors.

2. Working capital finance (foreign currency accounts) from Standard
Chartered Bank and HDFC Bank is against pari passu charge on inventory
and book debts and second charge on gross block of fixed assets of the
Company and further guaranteed bt one of the directors.

2. Company's share of loss from a joint venture overseas company,
Steelcast LLC USA is accounted for from the unaudited financial
statements received for the accounting year ended on 31st December,
2014.

3. Balances with sundry debtors, sundry creditors and for advances are
subject to confirmations.

4. As the company's business activity, in the opinion of the
management, falls within a single primary segment subject to the same
risks and returns, the disclosure requirements of Accounting Standard
(AS) - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.

5. Depreciation for the year has been aligned to comply with
requirement of Part C of Schedule II of the Companies Act, 2013.
Consequently, depreciation for the year is lower by Rs. 92.29 lacs.
Further, Rs. 66.23 lacs (net of deferred tax Rs. 34.10 lacs) in the respect
of the fixed assets where the useful lives as specified in Schedule II
is already expired, has been adjusted to the opening balances of the
Retained Earnings.

6. In the opinion of the Directors, the current assets, loans and
advances are approximately of the value as stated in the balance sheet,
if realized in the ordinary course of the business. The provision of
all known liabilities is adequate and not in excess of the amount
reasonably required.

ii. Some retrenched employees of the company have preferred an appeal
for their reinstatement, liability of which is unascertainable pending
decision of the higher court. The company, however, does not expect any
liability to arise on this account as the said retrenchment was
lawfully made as per the order of the Dy Commissioner of Labour,
Government of Gujarat and Gujarat Industrial Tribunal.

iii. Disputed Income Tax Liabilities Rs. 30,170 (1,054,000).

iv. In respect of land revenue charges: Rs. 2,129,906 (Nil)

v. In respect of other matters: Rs. 1,522,925 (Nil)

8. The management of the Company has, during the year, carried out
technological evaluation for identification of impairment of assets, if
any, in accordance with the Accounting Standard (AS) - 28 as prescribed
under the Companies (Accounting Standards) Rules, 2006. Based on the
judgment of the management and as certified by the Directors, no
provision for impairment is found to be necessary in respect of any of
the assets.

9. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

- Steelcast Education Trust

- F P Tamboli Charitable Trust

- Rushil Global Trade Limited

b. Key Management Personnel and their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Mr. V W Makary

10. Figures in the brackets are the figures for the previous year,
unless otherwise stated.

11. All the amounts are stated in Indian Rupees, unless otherwise
stated.

1. During the financial year 2011-12, the Company had issued 594,000
convertible equity warrants ofRs. 10/- each to M/s. Rushil Industries
Limited, a Body Corporate under the Promoters'' Group on preferential
basis at a premium of Rs. 98 per warrant. Against the said warrants,
198,000 shares (face value of Rs. 10) were allotted during the financial
year 2011-12 and 792,000 shares (adjusted to face value of Rs. 5 and
bonus issue) were allotted during the financial year 2012-13.
Accordingly, share capital of the Company has been increased to that
extent.

2. Companies'' share of profit from a joint venture oversees company,
Steelcast LLC USA is accounted for from the unaudited financial
statements received for the accounting year ended i.e. 31 December,
2012.

3. Balances with sundry debtors, sundry creditors and for advances
are subject to confirmations.

4. As the company''s business activity, in the opinion of the
management, falls within a single primary segment subject to the same
risks and returns, the disclosure requirements of Accounting Standard
(AS) - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.

5. The company has not received information from vendors regarding
their status under Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosures relating to amounts unpaid as at the
year-end together with interest paid/payable under this account have
not been given.

6. In the opinion of the Directors, the current assets, loans and
advances are approximately of the value as stated in the balance sheet,
if realized in the ordinary course of the business. The provision of
all known liabilities is adequate and not in excess of the amount
reasonably required.

(ii) Some retrenched employees of the company have preferred an appeal
for their reinstatement, liability of which is unascertainable pending
decision of the higher court. The company, however, does not expect any
liability to arise on this account as the said retrenchment was
lawfully made as per the order of the Dy Commissioner of Labour,
Government of Gujarat and Gujarat Industrial Tribunal.

8. Deferred tax liabilities of Rs.18,700,000 (40,000,000) arising
during the year, a major component of which is due to timing difference
related to depreciation charged in the accounts and as claimed under
the Income Tax Act, is debited to the profit & loss account. Details of
the balance of Rs. 107,100,000 are as under:

9. The management of the Company has, during the year, carried out
technological evaluation for identification of impairment of assets, if
any, in accordance with the Accounting Standard (AS) - 28 as prescribed
under the Companies (Accounting Standards) Rules, 2006. Based on the
judgment of the management and as certified by the Directors, no
provision for impairment is found to be necessary in respect of any of
the assets.

10. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

- Steelcast Education Trust

- F P Tamboli Charitable Trust

b. (i) Key Management Personnel and Their Relatives:

- Mr. T Kumar

Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli Mr. R C Tamboli

- Mr. V W Makary

11. Figures in the brackets are the figures for the previous year,
unless otherwise stated.

12. All the amounts are stated in Indian Rupees, unless otherwise
stated.

1. During the financial year 2011-12, the Company had issued 594,000
convertible equity warrants of Rs 10/- each to M/s. Rushil Industries
Limited, a Body Corporate under the Promoters' Group on preferential
basis at a premium of Rs 98 per warrant. Against the said warrants,
198,000 shares have been allotted during the current financial year
2011-12 and share capital of the Company has been increased to that
extent.

2. Pursuant to the Companies (Accounting Standards) (Second
Amendment) Rules, 2011, the Company has, w.e.f. 1st April 2011
exercised the option of deferring the charge to the profit & loss
account arising on exchange rate differences in respect of long-tem
monetary items. As a result of such exchange rate differences, so far
as they relate to the acquisition of depreciable assets, have been
adjusted to the cost of such assets and would be adjusted over the
balance life of the assets. Accordingly, the Company has capitalized
exchange rate difference gain of Rs 176,567 pertaining to the current
financial year in respect of its foreign currency loans.

This change in accounting policy has resulted in the profit for the
year as well as fixed assets as at the balance sheet date being lower
by Rs 176,567.

3. Balances with sundry debtors, sundry creditors and for advances
are subject to confirmations.

4. As the company's business activity, in the opinion of the
management, falls within a single primary segment subject to the same
risks and returns, the disclosure requirements of Accounting Standard
(AS)-17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.

5. The company has not received information from vendors regarding
their status under Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosures relating to amounts unpaid as at the
year-end together with interest paid/payable under this account have
not been given.

6. In the opinion of the Directors, the current assets, loans and
advances are approximately of the value as stated in the balance sheet,
if realized in the ordinary course of the business. The provision of
all known liabilities is adequate and not in excess of the amount
reasonably required.

(iv) Some retrenched employees of the company have preferred an appeal
for their reinstatement, liability of which is unascertainable pending
decision of the higher court. The company, however, does not expect any
liability to arise on this account as the said retrenchment was
lawfully made as per the order of the Dy Commissioner of Labour,
Government of Gujarat and Gujarat Industrial Tribunal.

8. Deferred tax liabilities of Rs 40,000,000 (8,500,000) arising
during the year, a major component of which is due to timing difference
related to depreciation charged in the accounts and as claimed under
the Income Tax Act, is debited to the profit & loss account. Details of
the balance of Rs 88,400,000 are as

9. The management of the Company has, during the year, carried out
technological evaluation for identification of impairment of assets, if
any, in accordance with the Accounting Standard (AS) - 28 issued by the
Institute of Chartered Accountants of India. Based on the judgment of
the management and as certified by the Directors, no provision for
impairment is found to be necessary in respect of any of the assets.

10. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

b. (i) Key Management Personnel and Their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Mr. V W Makary

11. Figures in the brackets are the figures for the previous year,
unless otherwise stated.

12. All the amounts are stated in Indian Rupees, unless otherwise
stated.

1. During the year, the Company issued 360,000 convertible equity
warrants of Rs. 10/- each to M/s. Tamboli Investments Private Limited,
a Body Corporate under the Promoters Group on preferential basis at a
premium of Rs. 56.50 per warrant. Against the said warrants, 180,000
shares have been allotted during the year and the share capital of the
Company has increased to that extent. The amount received in respect of
balance 180,000 convertible equity warrants is shown as Share
Application Money.

2. Balances with sundry debtors, sundry creditors and for advances are
subject to confirmations.

3. Interest on Term Loans and to banks as stated in Schedule-M is net
of interest receipts from others Rs. 3,434,905(4,068,999).

4. As the companys business activity, in the opinion of the
management, falls within a single primary segment subject to the same
risks and returns, the disclosure requirements of Accounting Standard
(AS)-17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.

5. Based on the information available with the company, there are no
overdue amounts outstanding as at the balance sheet date due to the
vendors falling under the Micro, Small and Medium Enterprises
Development Act, 2006.

6. In the opinion of the Directors, the current assets, loans and
advances are approximately of the value as stated in the balance sheet,
if realized in the ordinary course of the business. The provision of
all known liabilities is adequate and not in excess of the amount
reasonably required.

7. Advance payments of income tax are shown net of provisions of Rs.
71,494,941 including current years advance tax payments of Rs.
17,382,566 (107,025,260).

8. Contingent Liabilities

(i) Guarantees given by the bank and counter guaranteed by the company:
Rs. 20,762,608, (11,891,529).

(ii) In respect of Service tax: Rs. 75,000 (75,000)

(iii) In respect of disputed stamp duty: Rs. 24,551(24,551)

(iv) Claims against the Company, not acknowledged as debt: Rs.
1,059,897 (893,263)

(vi) Some retrenched employees of the company have preferred an appeal
for their reinstatement, liability of which is unascertainable pending
decision of the higher court. The company, however, does not expect any
liability to arise on this account as the said retrenchment was
lawfully made as per the order of the Dy Commissioner of Labour,
Government of Gujarat and Gujarat Industrial Tribunal.

9. Deferred tax liabilities of Rs. 400,000 (476,216) arising during
the year, a major component of which is due to timing difference
related to depreciation charged in the accounts and as claimed under
the Income Tax Act, is debited to the profit & loss account. Details of
the balance of Rs. 39,900,000 are as under:

10. The management of the Company has, during the year, carried out
technical evaluation for identification of impairment of assets, if
any, in accordance with the Accounting Standard (AS) 28 issued by the
Institute of Chartered Accountants of India. Based on
thejudgmentofthemanagementand as certified by the Directors, no
provision for impairment is found to be necessary in respect of any of
the assets.